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Buy These 3 Short-Term Government Bond Funds for Risk Mitigation
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Mutual funds investing in debt securities are among the most secure investment options that provide regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to portfolios with a large proportion of equity while providing dividends more frequently than individual bonds. U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
A short-term government bond fund is a mutual fund that is limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. This makes it an ideal option for investors looking for the safety net of investing in government bonds. Depending on the fund's definition, the short term can be up to five years.
GMO U.S. Treasury invests most of its net assets in Direct U.S. Treasury Obligations and collateralized repurchase agreements that include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as other zero-coupon securities. GUSTX advisors seek to maintain an estimated interest rate duration of one year or less.
GMO U.S. Treasury has three-year annualized returns of 4.4%. As of November 2024, GUSTX invested 33.4% of its net assets in U.S. Treasury Floating Rate Note.
Sei Short-Duration Government invests most of its net assets in U.S. Treasury obligations and other issues such as mortgage-backed securities and repurchase agreements that are guaranteed by various agencies or instrumentalities of the U.S. government. TCSGX advisors may also invest in securities issued by various entities of the U.S. government.
Sei Short-Duration Government has three-year annualized returns of 2.9%. TCSGX has an expense ratio of 0.48%.
Loomis Sayles Limited Term Govt and Agency invests most of its net assets in issues with credit quality above or below the credit rating of the U.S. government's long-term debt instruments, guaranteed by the U.S. government, its agencies or instrumentalities. NEFLX advisors may also choose investment-grade corporate notes and bonds, collateralized loan obligations, zero-coupon bonds, asset-backed securities and mortgage-related securities.
Loomis Sayles Limited Term Govt and Agency has three-year annualized returns of 2.7%. Christopher T. Harms has been the fund manager of NEFLX since April 2012.
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Buy These 3 Short-Term Government Bond Funds for Risk Mitigation
Mutual funds investing in debt securities are among the most secure investment options that provide regular income while protecting the capital invested. Funds that are part of this category bring a great deal of stability to portfolios with a large proportion of equity while providing dividends more frequently than individual bonds. U.S. government bond funds usually invest in Treasury bills, notes and securities issued by government agencies. They are considered the safest in the bond fund category and are ideal for risk-averse investors.
A short-term government bond fund is a mutual fund that is limited by its investment objectives and fund bylaws to investing primarily in short-term obligations of the federal government or its agencies. This makes it an ideal option for investors looking for the safety net of investing in government bonds. Depending on the fund's definition, the short term can be up to five years.
Below, we share with you three top-ranked short-term government bond mutual funds, namely GMO U.S. Treasury (GUSTX - Free Report) , Sei Short-Duration Government (TCSGX - Free Report) and Loomis Sayles Limited Term Govt and Agency (NEFLX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
GMO U.S. Treasury invests most of its net assets in Direct U.S. Treasury Obligations and collateralized repurchase agreements that include U.S. Treasury bills, bonds and notes and other securities issued by the U.S. Treasury, as well as other zero-coupon securities. GUSTX advisors seek to maintain an estimated interest rate duration of one year or less.
GMO U.S. Treasury has three-year annualized returns of 4.4%. As of November 2024, GUSTX invested 33.4% of its net assets in U.S. Treasury Floating Rate Note.
Sei Short-Duration Government invests most of its net assets in U.S. Treasury obligations and other issues such as mortgage-backed securities and repurchase agreements that are guaranteed by various agencies or instrumentalities of the U.S. government. TCSGX advisors may also invest in securities issued by various entities of the U.S. government.
Sei Short-Duration Government has three-year annualized returns of 2.9%. TCSGX has an expense ratio of 0.48%.
Loomis Sayles Limited Term Govt and Agency invests most of its net assets in issues with credit quality above or below the credit rating of the U.S. government's long-term debt instruments, guaranteed by the U.S. government, its agencies or instrumentalities. NEFLX advisors may also choose investment-grade corporate notes and bonds, collateralized loan obligations, zero-coupon bonds, asset-backed securities and mortgage-related securities.
Loomis Sayles Limited Term Govt and Agency has three-year annualized returns of 2.7%. Christopher T. Harms has been the fund manager of NEFLX since April 2012.
To view the Zacks Rank and the past performance of all short-term government bond mutual funds, investors can click here to see the complete list of short-term government bond mutual funds.
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